Business Report 7/27/16: Global effects of cheaper oil - Hawaii News Now - KGMB and KHNL

Business Report 7/27/16: Global effects of cheaper oil

(Image: Hawaii News Now) (Image: Hawaii News Now)
HONOLULU (HawaiiNewsNow) -

The global effects of cheaper oil continue to be fascinating. This morning, we've been saying WestJet profits are down almost two thirds. WestJet is a Canadian discount airline that flies here. We're not the problem, Alberta is.

Alberta has a lot of oil and gas drilling but business is bad now because of crude selling below $50 a barrel.

The U.S. economy has been sluggish but offsetting that we've had almost no inflation, and that, too, stems from low oil prices.

Commercial fertilizer is made with petrochemicals, so farming is also affected, though fertilizer producers haven't been passing all their savings through to farmers.

Solar power installations are down nationwide because the cost savings is less now than it is when oil costs twice as much. Cheap oil has also taken the starch out of the liquified natural gas industry, which seemed so promising when oil was $100 a barrel. Of course, a pretty good definition of an economy is, everything affects everything else.

Copyright 2016 Hawaii News Now. All rights reserved.

Powered by Frankly